Sony has had some taxes deferred for several years on the assumption that they would show a profit in subsequent years. They have failed to do so and the tax bill has come due. That accounts for a big portion of the loss.

It is going to impact across the entire company and cannot help but impact the gaming division. The news that the PS4 may be structured around more off the shelf parts sounds more credible now.

Kaz has gone on record indicating the he will not abandon the TV division so I suspect just about everything in Sony is up for restructuring.

Legend of Lara

10-04-12, 15:47

Oh... dear.

Poor Sony. :'(

robm_2007

10-04-12, 15:54

That's an insane financial loss! How can the tax bill be that much?

Jami393

10-04-12, 16:01

Cannot believe Sony are suffering from such money issues. Oh well.:p Also this might make me sound stupid but what does "robust" mean. Never heard that word before and saw it in this part of the page.

A key concept in Hirai's strategy hinges on merging Sony's robust roster of entertainment properties - including singers Kelly Clarkson and Michael Jackson, and the "Spider-Man" and "Men in Black" film franchises - with its Vaio, Bravia and other electronics brands, in an effort to boost sales.

Also will this issue cause a big problem on Sony's PS4?

Zelda master

10-04-12, 16:03

Crap has hit the fan at Sony...

Sir Croft

10-04-12, 16:18

Ouch.

larson n natla

10-04-12, 16:42

Is it true that Sony have made a loss on every PS3 sold since release? I've heard this bandied about before and if so it's no wonder that they're racking up huge losses in other areas.

It's a shame because they're a very innovative company.

lara c. fan

10-04-12, 16:47

Is it true that Sony have made a loss on every PS3 sold since release? I've heard this bandied about before and if so it's no wonder that they're racking up huge losses in other areas.

It's a shame because they're a very innovative company.

They started making a profit from them last year, I think. The Slim used cheaper parts due to things like manufacturing processes going down to 45nm and such.

Zelda master

10-04-12, 16:48

Is it true that Sony have made a loss on every PS3 sold since release? I've heard this bandied about before and if so it's no wonder that they're racking up huge losses in other areas.

It's a shame because they're a very innovative company.

I believe that the PS3 has been profitable for a while now, but they did make a loss on every single Playstation 3 for many years that's true.

Jami393

10-04-12, 16:49

I just thought if Sony got out of the console market couldn't this save them money, or would it make them worse?

Diablo_Rosso

10-04-12, 16:51

Kill off the TV brand. That's been losing money for eight years.

jajay119

10-04-12, 16:52

Not as big a loss as the preceeding year i don't think. So that's good at least.

Samsdad

10-04-12, 17:53

Not as big a loss as the preceeding year i don't think. So that's good at least.

They started making a profit from them last year, I think. The Slim used cheaper parts due to things like manufacturing processes going down to 45nm and such.

I believe that the PS3 has been profitable for a while now, but they did make a loss on every single Playstation 3 for many years that's true.

Ah... but still one year of profit after five years of loss? Crazy!

Apparently their TV sector isn't doing to well either, perhaps its time for Sony to streamline their industry and focus on a less broad range of technologies?

RAID

10-04-12, 18:57

The news that the PS4 may be structured around more off the shelf parts sounds more credible now.

Sorry. I don't quite understand this part. What does it mean?

ajrich17901

10-04-12, 19:03

Ya know if this forum went 1 week without posting something negative about Sony I'm sure it would implode.

Samsdad

10-04-12, 19:04

Oh... I'll just hush my mouth then!

It wasn't meant to be a put down. It is just that this is really a major crisis for Sony. Sony was valued at about 120bn in 2000. Today it is valued at 20bn. Yet the loses over the last four years have been over 11bn total. Hugh staff reductions are hard to bring about in Japan where there is an employed for life-company loyalty tradition. The economic crisis in Europe, the PS3's strongest market, has also hurt Sony, almost as much as their deline of the TV business in the US. The strength of the Yen against the Euro and the Dollar does not look like it is going to change in the near future. There are a lot of things working against Sony right now.

Maybe Kaz can shock the socks off of everyone and really turns things around. He may come up with something totally radically in entertainment delivery centering around the strong PS3 base. The next 6-12 months are going to be crucial and very interesting.

@Raid A current rumor has the PS4 abandoning the cell and going with a more standard AMD CPU/GPU combination. Using these more standard parts reduces the cost somewhat.

@ajrich17901 News is news. Don't read it if it bothers you

MangelinaJolie

10-04-12, 19:12

Ya know if this forum went 1 week without posting something negative about Sony I'm sure it would implode.

The same could be said in the other direction, only with more standing, I think. It's not our faults Sony brings such news constantly, so making a post like this is pretty pointless. Nobody is attacking them, it's the truth. If you can't handle that then... that's your own problem.

But this is shocking to hear. Are Sony becoming bankrupt?:eek: If this isn't the case, I hope this at least delays the PS4 for a while longer, as I'm not done with the PS3 generation just yet.

Tommy123

10-04-12, 21:32

oh damn 0.o Is it cause of that Vita that nobody bought?

Rachie737

11-04-12, 00:21

@Samsdad, nothing lost, nothing gained.

But this is shocking to hear. Are Sony becoming bankrupt?:eek: If this isn't the case, I hope this at least delays the PS4 for a while longer, as I'm not done with the PS3 generation just yet.

That's the only good thing I see coming out of this as well. If they do end up with shelf parts, then they will probably get an even bigger loss on the PS4s than the PS3s. It's probably best they don't rush it.

Diablo_Rosso

11-04-12, 00:38

Sony are more likely to go conservative with their future products. There's no way they can launch a new console at a loss like they did with the PS3.

Shark_Blade

11-04-12, 01:00

I pity Sony, this is rough.

I hope playstation doesn't go extinct like Dreamcast does.

TRLegendLuver

11-04-12, 06:20

Is it true that Sony have made a loss on every PS3 sold since release? I've heard this bandied about before and if so it's no wonder that they're racking up huge losses in other areas.

It's a shame because they're a very innovative company.

I don't know if they made a loss on every PS3 sold since it was released, but the old PS3s, the "fat ones", almost all of them have gone dead, received the yellow-light of death, so to speak, and weren't bought as much afterwards. When the Slim came out in 2009, however, their sales increased briefly but unfortunately, due to the nature of the old console versions' features that the Slim lacks in, it wasn't sold as much. Some things like backwards capability wasn't included into the new model like it was in the older versions, for example.

I can see them having some money problems after a huge occurrence like that.
I pity Sony, this is rough.

I hope playstation doesn't go extinct like Dreamcast does.

I doubt that will ever happen. The Playstation systems are the reason Sony has done so well. It's their other endeavors that are making them suffer.

---

This does and doesn't surprise me at the same time. I have a hard time believing the amount of loss is that high; I have a feeling it may of been exaggerated. Whether it is or isn't that high, Sony has been messing up the past couple years when it has come to more than their consoles. They made more things than they can sell and now the tax companies want their money. Problem is, Sony doesn't really have it. I hope they do get it straightened, however, because I do enough Sony's products, even though their workers are another story.

RAID

11-04-12, 06:22

@Raid A current rumor has the PS4 abandoning the cell and going with a more standard AMD CPU/GPU combination. Using these more standard parts reduces the cost somewhat.

Thanks :)

Chug a Bug

12-04-12, 01:30

http://gamrconnect.vgchartz.com/thread.php?id=142146

Sony has had some taxes deferred for several years on the assumption that they would show a profit in subsequent years. They have failed to do so and the tax bill has come due. That accounts for a big portion of the loss.

It is going to impact across the entire company and cannot help but impact the gaming division. The news that the PS4 may be structured around more off the shelf parts sounds more credible now.

Kaz has gone on record indicating the he will not abandon the TV division so I suspect just about everything in Sony is up for restructuring.

It's got a new CEO too though I doubt it'll make a huge difference.

Sony seem to lost their competitive edge, I remember when Sony used to make cutting edge products, the Walkman was revolutionary back in the '80's and everyone who was anyone wanted one. Sony is a byword for quality and reliability but at the same time it's perceived as rather... dull. Staid. Set in it's ways. It hasn't come out with anything cutting edge in quite some time now the original PlayStation is credited with making the console market take off but it's lead has been replaced by the Xbox and it doesn't seem to have an answer.

The ship seems... rudderless.

Shark_Blade

12-04-12, 01:48

I doubt that will ever happen. The Playstation systems are the reason Sony has done so well. It's their other endeavors that are making them suffer.
It's not doing so well now. Even PS Vita. :(

Jami393

12-04-12, 02:01

I pity Sony, this is rough.

I hope playstation doesn't go extinct like Dreamcast does.

I didnt like they Dreamcast dying, but PlayStation I wouldn't mind. Anyway Sony owe Nintendo big time with the PlayStation.:D

Shark_Blade

12-04-12, 02:12

I didnt like they Dreamcast dying, but PlayStation I wouldn't mind.
How could you say such a thing? :eek:

Anyway Sony owe Nintendo big time with the PlayStation.:DHuh? :confused:

Jami393

12-04-12, 09:01

How could you say such a thing? :eek:

Well to be honest I'm not much of a Sony fan, and only be getting the PS3 for exclusives. When I have a PS3 and I see a game for both 360 and PS3, I'll just get it for 360.

Huh? :confused:

Well before the PlayStation ever existed, Sony originally had a joint partnership with Nintendo for a CD console, but things never worked out and a lot later that console became the famous Sony PlayStation.

Zelda master

12-04-12, 14:13

How could you say such a thing? :eek:

Why not, of all fanboys the once of Sony are truly the worst :pi:

Samsdad

12-04-12, 14:54

http://gamrconnect.vgchartz.com/thread.php?id=142237&page=1

Not much new in the briefing. No specifics as to how Sony is going to turn around the financial situation, beyond the cuts in personnel, but that is to be expected. I imagine that they are still working out possible strategies and will be for the next couple of years.

From a gamers perspective, the gaming division was cited as one of the core pillars of the company and will receive support.

"Sony wants to “revitalize and grow” its electronics business under Hirai’s new management plan, according to the statement. The initiatives include bolstering the digital imaging, games and mobile businesses; turning around the TV division; expanding in emerging markets; creating new businesses and accelerating innovation; and realigning the business portfolio."

Agent 47

12-04-12, 20:06

For me Samsdad, Sony has too many fingers in too many pies. That must cost a fortune. I say they should cut their losses and sell off all of it's non profitable divisions. Downsize and start again, stick to what they are/were good at.

If it means killing off the Playstation brand then so be it, i'm sure the games industry will be fine without them :D

Maybe Sony could reattempt a joint venture with another high profile electronics firm (should save a few coin?)

Sgt BOMBULOUS

12-04-12, 20:16

This does and doesn't surprise me at the same time. I have a hard time believing the amount of loss is that high; I have a feeling it may of been exaggerated. Whether it is or isn't that high, Sony has been messing up the past couple years when it has come to more than their consoles. They made more things than they can sell and now the tax companies want their money. Problem is, Sony doesn't really have it. I hope they do get it straightened, however, because I do enough Sony's products, even though their workers are another story.

Public companies don't have the luxury of "exaggerating" anything in their financial reports. Enron tried that and it didn't work out too well in the end. :p

Jami393

12-04-12, 20:20

I doubt they would, but would anyone actually be upset if Sony gets rid of their PlayStation brand to help their money issues? I wouldn't that much because I'm not much of a Sony fan.

Atlantisfreak

12-04-12, 20:33

Double post >_<

Atlantisfreak

12-04-12, 20:35

I doubt they would, but would anyone actually be upset if Sony gets rid of their PlayStation brand to help their money issues? I wouldn't that much because I'm not much of a Sony fan.

Are you for real? :confused: I don't even... Of course people would be upset!

Jami393

12-04-12, 20:44

Are you for real? :confused: I don't even... Of course people would be upset!

Yes I am for real. I would only get a PS3 for exclusive, especially for the exclusive that was on the PS2 and carried on to the PS3. Games such as Ratchet & Clank, Yakuza and even though it wasn't on PS2 Uncharted. Other than that I wouldn't be too upset.

Agent 47

12-04-12, 20:45

I doubt they would, but would anyone actually be upset if Sony gets rid of their PlayStation brand to help their money issues? I wouldn't that much because I'm not much of a Sony fan.

And yet you posted above you want one just for exclusives!!!

You either like Sony or you don't, why bother turning into a hyprocrite? Wow seriously if i bought a 360 after all the slagging off i'd done i wouldn't show my face on the internet again :vlol:

a_pok

12-04-12, 20:53

three weeks after I buy a Vita, I loose my phone and I have to buy a new one...

two weeks after I buy a new Xperia, I find this thread...

one week from now, I am probably gonna keep the above items as rare collectibles on my desk :(...

EDIT: out of topic but I can't help it...

MY 1K POST!!!! :jmp: :jmp: !!!!!!!

Diablo_Rosso

12-04-12, 21:04

Sony aren't going... Yet. I think Kaz Hirai is the man to turn them around, at least, I hope he is.

Jami393

12-04-12, 21:18

And yet you posted above you want one just for exclusives!!!

You either like Sony or you don't, why bother turning into a hyprocrite? Wow seriously if i bought a 360 after all the slagging off i'd done i wouldn't show my face on the internet again :vlol:

Just because I like the exclusives coming out for PS3 doesn't mean i have to like PlayStation in general.

Samsdad

12-04-12, 21:30

For me Samsdad, Sony has too many fingers in too many pies. That must cost a fortune. I say they should cut their losses and sell off all of it's non profitable divisions. Downsize and start again, stick to what they are/were good at.

If it means killing off the Playstation brand then so be it, i'm sure the games industry will be fine without them :D

Maybe Sony could reattempt a joint venture with another high profile electronics firm (should save a few coin?)

I throughly agree that Sony needs to slim down and focus, but I really think it would be bad for the gaming world if they jettisoned the Playstation brand, if only from the point of view of having a competitive market.

As an aside I have often wondered why there has not been a European company in the gaming hardware business. Perhaps that might a source for a "joint venture'. The PS brand has a strong presence in the European arena.

Shark_Blade

13-04-12, 00:59

I doubt they would, but would anyone actually be upset if Sony gets rid of their PlayStation brand to help their money issues? I wouldn't that much because I'm not much of a Sony fan.

There's so much ignorance in this post. Just think for a sec, what if MS get rid of their Xbox brand? No one cares right? :rolleyes:

Tommy123

13-04-12, 03:48

so what exactly made them lose all this money?

Spong

13-04-12, 04:06

^The recession.
Either that or Anonymous hacked their bank account :vlol:

Phlip

13-04-12, 04:09

^The recession.

I'm surprisded you're not, like me, thinking it's down to Sony's **** handling of everything to do with the PS3.

Shark_Blade

13-04-12, 04:13

Poor decision choice should be taken into account as well. :/

Spong

13-04-12, 04:19

I'm surprisded you're not, like me, thinking it's down to Sony's **** handling of everything to do with the PS3.